Abstract
Energy storage systems (ESS) are considered as a promising solution to improve power system flexibility and facilitate the integration of renewables in electricity markets. This paper investigates the impact of strategic offering by an ESS operator in the day-ahead and balancing market. The offering strategy of a price-maker ESS operator is formulated as a bilevel model, where the upper-level problem represents the profit maximization of the ESS operator and the lower-level problem simulates the market-clearing outcome. This methodological framework can be used either to assess market efficiency distortion or as a trading strategy from the perspective of the ESS operator. Our analysis shows that adopting strategic behavior may improve ESS expected profit but reduces social welfare, especially for high ESS energy-to-power ratios.
Original language | English |
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Title of host publication | Proceedings of 2017 IEEE Manchester PowerTech |
Number of pages | 6 |
Publisher | IEEE |
Publication date | 2017 |
Pages | 6 pp. |
ISBN (Print) | 9781509042371 |
DOIs | |
Publication status | Published - 2017 |
Event | 12th IEEE Power and Energy Society PowerTech Conference: Towards and Beyond Sustainable Energy Systems - University Place, University of Manchester., Manchester, United Kingdom Duration: 18 Jun 2017 → 22 Jun 2017 |
Conference
Conference | 12th IEEE Power and Energy Society PowerTech Conference |
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Location | University Place, University of Manchester. |
Country/Territory | United Kingdom |
City | Manchester |
Period | 18/06/2017 → 22/06/2017 |
Keywords
- Power system management, operation and economics
- Optimisation techniques
- energy storage
- optimisation
- power markets
- pricing
- State of charge
- Wind forecasting
- Energy storage
- Electricity supply industry